Monday, July 24, 2017

DOE submits amendments to ADB loan on e-trikes

The Department of Energy (DOE) has
submitted to the Asian Development Bank (ADB) this month its proposed ‘loan
term amendments’ for the financing of the rollout of the initial 3,000 electric
tricycle (e-trike) fleet.

According to DOE Director Patrick
Aquino, the modifications include “the expansion of the deployment options to
include private parties and other government agencies.”

Previously, the proposed rollout of
e-trikes had been done only through local government units (LGUs) – but
that was perceived “restrictive” by some affected parties.

That then prompted the energy department
“to explore alternative measures” to remedy that hurdle, so the loan-covered
3,000 e-trikes could thrive as a pilot to the longer and more massive scale
electric vehicle (EV) deployment plan of the government.

Additionally, the previous loan condition
had been for the e-trike’s cost to be guaranteed by the international revenue
allotment (IRA) of concerned LGUs, but that too is being tweaked in the loan
terms.

Aquino said the proposed loan term
modifications had been lodged with the ADB this July, and its approval is also
anticipated “within this month.”

The e-trike program of the
government had been cast on 100,000 units rollout, but following the decision
of Energy Secretary Alfonso G. Cusi to cancel the bulk of the ADB loan, the
coverage had just been confined subsequently to 3,000 e-trike units.

Beyond the pilot phase, the energy
department is strategizing on how it could position EVs as viable alternative
to the country’s transport system.

The DOE has been noting that “the
industry must ensure the operation of adequate recharging stations and after
sales support if e-vehicles are to take the place of vehicles running on fossil
fuels like gasoline and diesel.”

It noted that the nascent EV sector
must similarly consider performance improvement of the deployed fleets, as well
as mileage and durability of EVs, “so they could develop over time both in
capacity and reputation that will match and stand toe-to-toe – or
wheel-to-wheel with their petroleum-powered counterparts.”

Such goals, it was noted, had been
incorporated in the Alternative Fuel Roadmap crafted by the department, so it
can flesh out the short- to medium – and long-term plans and strategies on the
development of the EV sector.